In the last couple of weeks we have seen some significant moves by the major banks and financial institutions that run their European operations out of London. There have been mixed signs for Dublin.
It is undoubtedly good news that JP Morgan has committed to expanding its presence in Dublin, with its acquisition at Capital Dock, along with Standard Life and Investec verbally showing intent to grow their headcount in the city. However, there are still serious concerns regarding the quantity and quality of residential accommodation available in and around the city centre to meet demand.
For Dublin to take advantage of the potential growth of the workforce, it is going to need a concerted effort by the lenders, politicians, developers and planners to push construction forward.
With the likes of Standard Chartered and Goldman Sachs also considering where to locate staff, now is the time to demonstrate that the city is serious about accommodating them. Hiscox, for example, has already chosen Luxemburg for its new post Brexit European subsidiary.
The Dublin City Development Plan 2016-2022 was introduced in October last year and it sets out a grand vision, but there is doubt as to whether it will be implemented quickly enough, or go far enough, to enable the required development to take place. I don’t think we have the luxury of time.
We need to see Dublin City Council move swiftly to pass planning applications and consider flexibility on what is and isn’t allowed. New development sites are at a premium, but, should it be approved, there is plenty of scope to better utilise existing building stocks, particularly in the city’s Georgian district.
This push to prepare for Brexit related relocations provides a real opportunity for savvy investors to generate significant returns, especially if they are able to pick up the right sites at the right price and then utilise intelligent asset management initiatives.
Andy Brainin is a director at South Hill Capital, a specialist investment and asset management firm with particular experience in Dublin.